Converted Organics (COIN) Bullish Triangle Play
I haven’t featured too many trades here at the blog recently but once the Fed is out of the way and some of the market uncertainty lifted, I’ll begin featuring them more. Today, I feature Converted Organics (COIN), a stock that more than tripled near the beginning of the year in just a few weeks. Since then, volume has dried up and price converged into a bullish triangle formation. As you can see in the chart below, the stock could still drop to near 9 and still be considered in a bullish formation so there is room to consolidate for a few more days. An entry may be signaled on a break out above the top of the triangle, just make sure the volume is there. Also, consider smaller positions because these low price, momentum, speculative plays carry much more risk in a bear market. Keep losses small and lock in profits quicker!
People have been trying to call a top in the solar energy stocks for months now but the good news just keeps on coming in this sector and it remains white hot.. Now I’m in no way recommending initiating aggressive positions in the leading solar stocks at this point. It’s more a situation of a short term trade over the next few weeks or a hold if you’ve been the names for awhile. These stocks are far too extended for large positions.
Leading solar stocks such as First Solar (FSLR), JA Solar (JASO), Suntech Power (STP), MEMC Materials (WFR) and Solarfun Power Holdings (SOLF) aren’t showing any technical deterioration despite massive runs but at some point the music will stop and you better find a chair. With that disclaimer out of the way I’d like to highlight a Solar Trade of the Day.
Despite an amazing run that saw Solarfun (SOLF) nearly triple in just one week, the stock is breaking out of a bullish pennant formation and looks poised for more. Volume wasn’t great today, so it could pull back a bit offering a better entry. New support is just above 26.
Disclaimer: I own a position in SOLF
Trade of the Day – Short Setup in Sadia (SDA)
I suppose I should rename the Trade of the Day feature to Trade of the Week the way it’s been going lately. I’ll try and post more of these, just been really busy with this crazy market of late.
Today I thought I’d go against the grain of the past few days, perhaps to serve as a reminder that yes bears are still firmly in control and two days of big gains doesn’t change that at this point. Today I highlight a short setup in Sadia (SDA), a Brazilian processor of food products. This short setup is very characteristic of what I look for in most of shorts I look for – a high volume break down of support followed by a weak retest of what is new resistance, in this case the 50 day moving average. One of the better looking shorts out there in my opinion.
Disclaimer: I do not have a position in SDA at the time of this writing.
It’s been quite awhile since I’ve posted a trade of the day here .. been a very busy few weeks. Today, I wanted to bring to you a great opportunity emerging in PGI. The stock broke out of a 6 month base with near record volume to a new all time high on October 19th and ran up over 20% in just a matter of days. Since that time, the stock has digested those gains in a very bullish manner, with tight price action and diminishing volume. It’s carving out a triangle pattern which happens to be one of my favorite patterns and is looking ready to bust out at any time. It probably just needs the wind of another dead cat bounce rally at its back to get going out of this formation. Once of the better looking charts out there right now.
Full Disclosure/Disclaimer: The stock of the day is by no means a buy recommendation. Please do your own research and make a personal decision based on your own tolerance for risk. I currently do own a position in Premier (PGI)
Metals continue to shine as gold soars to new highs and with it comes breakouts.. lots of them. That brings opportunity such as the one in GMO which I’ve been highlighting to Gold and Platinum members over the past few days and wanted to highlight it here as well. This speculative gold, silver and zinc miner broke out of the handle formation of a cup with handle formation to new all time highs today with volume that is currently running at 3x the daily average.
The stripper stocks (for those into political correctness the "adult entertainment providers") have been getting their move on to the upside of late with Rick’s Cabaret (RICK) in pole position and leading the way. I alerted premium members to a purchase in the Model Portfolio a couple weeks ago and it’s been a great performer ever since. Not far behind is VCG Holdings (PTT) another stripper stock busting out here above a long downward trend and hungry for more. There isn’t any resistance until it hits 12 so quite a bit of room to run.
Hey even Playboy (PLA) is bouncing and worth a look
It’s been a few days since I’ve featured a trade of the day. I’ve just been too busy to post much of late but will be getting back into a flurry of posting at the beginning of next week. Today, I’d like to highlight two outstanding looking breakout stocks – one in top rated IPO Qiao Xing Mobile (QXM) and another in Globecomm (GCOM). Both are breaking out with big volume and look poised to move higher from here.
QXM is a top rated IPO here at SelfInvestors.com and if you’ve been checking out my new IPO portal page, you would have noticed that QXM is one of the highest rated with a fundamental score of 27/30. Today, the stock broke out of a cup with handle base formation with heavy volume, it’s first base and breakout since going public back in May.
Another great looking breakout today occurred in Globecomm a company with great fundamentals which broke out to a new all time high. Volume is more than double the daily average today.
Today I feature two trades of day, both in the shipping space, both Greek, both breaking out to record highs with big volume. Enough said.
Today’s trade features a former high flying IPO that shot up out of gates over 100% after going public in 2004 but has been mired in a long downtrend over the past few years. That downtrend is over and the automated fingerprinting company appears ready to get back on the growth track. The stock broke out of a base a couple days ago with good volume and has pulled back to the breakout point offering another chance at an entry. I think the stock has an excellent chance of running to the next level of resistance around 19 – 20.